Deutsch Bank Expects Major Steel Disruption From Japan’s Disaster
Deutsche Bank says the 8.9 earthquake that hit Japan on Friday has dramatically impacted the country’s industrial complex, destroying transportation infrastructure and production facilities. In 2010, Japan produced 110 mln mton of crude steel, accounting for 7.9% of global production, and roughly 23 mln mtons (27%) were exported in 2010. Firm says in total they est that up to 40% of the country’s steel production could be impacted in the short term as a result of this earthquake
Steel sector displaying relative strength
STLD +3.7% held at its Jan lows yesterday and this morning its reaching up toward its 50 sma and this wk/range highs (18.59/18.64), ATI, CLF, SID, GGB, NUE, PKX, RS, VALE, TX, X.
Comments »Companies To Benefit From Japan’s Reconstruction
ISI Issues Report on Software Companies That May Have Revenues Hurt by Japan’s Disaster
ISI Group discloses its software sector exposure to Japan (33.64 -0.97)
ISI Group says in light of the tragedy in Japan, they put together the software sector’s exposure to the Asia Pacific region, and where disclosed, its exposure to Japan. The firm sees Adobe’s (ADBE) Japan exposure of 13% of total revenue, Autodesk (ADSK) 10% of total rev, Oracle (ORCL) 5% of total revs, and Red Hat (RHT) 8% of total revs.
Comments »Nissan Issues Statement and Impact on Operations
Nissan Motor issues Statement Regarding Status of Japanese Earthquake and Impact on Nissan Americas Operations (17.62 -1.38)
All Nissan Americas manufacturing facilities remain operational and will continue normal production schedules until further notice. In total six of Nissan’s facilities in Japan have reported some damage to their buildings or equipment, including Iwaki Plant (Iwaki City, Fukushima Prefecture), Tochigi Plant (Kawachi County, Tochigi Prefecture), Yokohama Plant (Yokohama City, Kanagawa Prefecture), Oppama Plant (Yokohama City, Kanagawa Prefecture), Zama Operations Center (Zama City, Kanagawa Prefecture) and Honmoku Wharf (Yokohama City, Kanagawa Prefecture). # Nissan’s Tochigi and Iwaki plants will suspend operations until Friday, March 18. # Nissan’s Oppama, Kyushu, Shatai and Yokohama plants will suspend operations until Wednesday, March 16.
Comments »Pfizer shares climb on rumors of asset divestiture
Rumors that Pfizer Inc. would sell off underperforming assets, circulated by analysts at Sanford C. Bernstein, are causing the shares to rally today.
It’s one of the only stocks that is…
Comments »Oil Rebounds on Saudi Troop Injection Into Bahrain
everything else sells off with the exception of solar, chips, gold & silver…..
Comments »Crack Spreads Highest Since 2007
Due to the recent developments abroad, NYMEX crack spreads are at their highest levels since May of 2007, now above $25. As a result, refinery related stocks have been very strong. However, it’s worth noting, they are all considerably off the highs reached back in 2007.
Year to date, crack spreads are up more than 60%. In other words, refiners are minting money right now.
Comments »What is IBM Waiting for With $11 Billion in Cash ?
Perhaps they are waiting for a second chance @ historically low level purchases…..?
Comments »SEC Employees Could Not Bust Criminals Due to Watching Porn
Alan Greenspan Blames “Crappy Economy on Big Governemnt”
In a paper delivered to the Council on Foreign Relations Greenspan states that a full economic recovery would be robust and underway if not for big government.
Greenspan goes on to say his evidence is in lack luster fixed asset investments. The economy is hampered by financial regulation, moral hazard, and deficit spending….
Comments »Flash: Meltdown Occurring at Fukushima
Japanese officials have decided to finally tell the truth, disclosing the fuel rods inside all three troubled reactors may be melting down.
Comments »Libya conflict continues as rebels reprise
Qaddafi continued his press forward against the positions of rebel forces throughout the weekend, going into Monday, as warplanes bombed Tobruk, a strategic location for the opposition.
France and Britain hiked up pressure, meanwhile, for the implementation of a no-fly zone that rebels are desperately pleading for.
At the oil port of Brega, rebel forces which were recently dislodged from their fortifications have claimed that they snuck back and reclaimed the city by nightfall.
Qaddafi’s forces, despite a strong push back against the uprising, are stretched and dependent on continued airstrikes and artillery positions, or so claims from the uprising suggest.
As to which side is winning, both are claiming victory.
Comments »Monday S&P credit ratings
S&P Corrects Rating On One Maturity Of Metropolitan Transportation Authority, N.Y.’s 2003B Bonds To ‘A’ From ‘AAA’ 14-Mar-2011
10:40 EST
ADS Tactical Inc. Assigned ‘B+’ Corporate Credit Rating, $275 Million Notes Rated ‘B’; Outlook Is Stable 14-Mar-2011
10:37 EST
Class A1 Ratings Lowered To ‘D (sf)’ In EUROMAX IV MBS Cash Flow CDO Of Mezzanine ABS 14-Mar-2011
10:11 EST
Swiss Chemicals Company Clariant Affirmed At ‘BBB-/A-3’; Off Watch; Outlook Negative On Medium-Term Deleveraging Risks 14-Mar-2011
09:48 EST
Morgan Stanley ACES SPC Series 2006-8 Class A-10 ‘B- (sf)’ Rating Affirmed 14-Mar-2011
09:41 EST
Rating Lowered On Class A3 And Unchanged On Class A1 And A2 Of Irish RMBS Deal Fastnet Securities 6 After Restructure 14-Mar-2011
08:50 EST
Three Notes Issued By Abu Dhabi Special-Purpose Entity IPIC GMTN Ltd. Rated ‘AA’ 14-Mar-2011
03:59 EST
Ranhill Bhd. Rating Lowered To ‘B-‘ On Project Suspension In Libya, Refinancing Risk; Remains On CreditWatch Negative 13-Mar-2011
23:38 EST
S&P Corrects Rating On Helium Capital Ltd. Series 64 Transaction 13-Mar-2011
23:35 EST
Today’s Gainers and Losers
Biggest point gainers: LZ (133.92 +28.48), NEU (148.10 +17.49), FSLR (146.02 +6.28), PKX (108.01 +5.27), GPOR (30.00 +4.63), AAPL (355.42 +3.43), SINA (98.32 +3.39), IOC (73.40 +3.33), LDR (64.12 +3.23), CMG (255.47 +2.71), LULU (78.98 +2.48), JKS (24.90 +2.29), SMBC (23.90 +2.28), TSL (26.26 +2.03), SHI (53.64 +2.02), STRA (141.63 +1.94), TSO (26.39 +1.88), ASH (57.87 +1.83), CNX (50.40 +1.79), KSP (8.07 +1.60), FLS (124.40 +1.58), WLK (50.10 +1.57), WFR (13.46 +1.44), CRUS (22.36 +1.36).
Biggest point losers: HIT (50.44 -8.68), SHAW (31.55 -6.86), IX (46.48 -6.39), CCJ (31.07 -6.31), MKL (397.47 -5.93), KYO (93.37 -4.81), PCLN (458.68 -4.51), BH (403.41 -4.35), TM (81.74 -3.91), WSC (388.15 -3.70), ETR (70.11 -3.59), COH (52.81 -3.27), CPRH (128.86 -3.14), ALX (376.54 -3.10), XIV (124.04 -3.02), OPEN (88.57 -2.96), RL (124.55 -2.68), TIF (60.56 -2.63), CF (123.45 -2.57), SNE (30.96 -2.49), XEC (105.52 -2.28), TNDM (14.70 -2.25)
Comments »Updates on Stocks Effected by Japan’s Quake
Japan Update: Many groups on the move as assessment Japan fallout continues… (10.00 -0.80) -Update
As we’ve mentioned throughout the morning, Japan’s Nikkei fell 6.2% overnight as the fallout from Friday’s earthquake and tsunami becomes more clear. There are many groups on the move this morning as a result of the developments there, including alternative energy (uranium stocks down sharply, solar-related issues bid up), technology (DRAM supplier MU higher on shortage concerns), Japanese ADRs, insurers and other.
Nuclear Power/Alternative Energy: There was another explosion at Japan’s damaged Fukushima Daiichi nuclear plant over the weekend, which is raising concerns about the potential for a nuclear meltdown at the facility. The emergency at Japan’s nuclear plant is naturally stoking fears about nuclear power programs in other parts of the world. The highly publicized Japanese issues are causing concerns about increased scrutiny and a more negative perception of nuclear power (which already has a negative stigma). This is weighing heavily on uranium stocks (DNN -23%, URRE -23%, UEC -20%, URG -20%, CCJ -18%, USU -17%) and companies that are involved in the nuclear power business (SHAW -19%, BWC -11.4%, URS -6.0%, FLR -1.5%). The Nuclear Energy ETF (NLR) is -12%… On the other hand, solar and wind power stocks are trading higher this morning, given the safer nature of those form of alternative energy: WFR +9.7%, TSL +8.4%, JKS +6.7%, YGE +6.0%, LDK +6.0%, STP +5.0%, FSLR +4.6%, JASO +4.1%, SOL +3.6%, APWR (wind power) +3.6, SPWRA +2.3%. The U.S. Nuclear Regulation Commission said it sees no radiation at harmful levels reaching the U.S.
Insurance: There were plenty of notes on the Street this morning analyzing the impact of the Japan earthquake, many of which surrounded the insurance industry. Catastrophic (CAT) insurance companies stand to carry some of the cost of the clean up, which is now estimated at upwards to $35 bln. FSR (-3.7%) is a notable CAT bond holder. However, much of the burden will fall upon a Japanese government-sponsored catastrophe reinsurance program. Wunderlich noted this morning that the event will likely increase pricing to insure in the region, and HCC (-0.4%) could stand to benefit… AFL (-3.2%) said earlier today that its Japanese offices are fully operational, and that it sees a minimal impact on Japanese sales; AFL also affirmed its earnings guidance.
Technology: The earthquake also has implications for the tech supply chain. Some companies with larger operations in Japan include ONNN -1.7%, NTE -0.7%, FLEX +0.3%, MOLX +0.3%. On the other hand, few companies may actually benefit. Micron (MU +4.6%) is seeing early strength off the open on speculation that DRAM chip suppliers have stopped offering price quotes. Essentially, this suggests the potential for a shortage in DRAM and higher prices.
Geographic ETFs: Given the continued volatility in Japanese stocks, we’d again point out the Asian geographic ETFs: EWJ (Japan) -8.5%, EWH (Hong Kong) -0.5%, EWY (South Korea) +1.1%, EWS (Singapore) -0.7%, VNM (Vietnam) -2.8%, EWM (Malaysia) -2.3%, AAXJ (Asia excluding Japan) -0.0%, and FXY (Japanese yen) +0.0%.
Japanese ADRs: HIT -14%, MFG -9.0%, NJ -8.0%, SNE -6.6%, HMC -6.3%, MITSY -6.0%, TM -5.3%, MTU -5.0%, CAJ -4.7% and NTT -4.0%.
Oil: Japan is the world’s third largest consumer of crude oil, so its disruption is seen as a negative for crude demand. Crude oil traded as low as 98.95 overnight, but has since risen back above $100 on headlines out of the Middle East.
Comments »52 Week Highs and Lows Today
New 52-week highs trading over 250K (average daily volume) include: Biotechnology & Drugs (BIIB, GENZ, JAZZ, KV.A, REGN, TLCR, VRUS), Electric Utilities (D, LNT, NU, PNW, WEC, XEL), Food Processing (HSY, SJM), Healthcare Facilities (FVE, HMA, RHB),Medical Equipment & Supplies (BLTI, COO, STJ), Natural Gas Utilities (AHD, APL), REITs (EXR, YSI), and Software & Programming(BSFT, CALD, CBR, RNOW).
New 52-week lows trading over 250K (average daily volume) include: ANW, CAK, CNIT, DJSP, ELNK, GEDU, JAG
Comments »Hershey, HSY, Price Target Raised by UBS
Hershey Foods target raised to $54 at UBS (53.63 -0.10)
UBS raises their HSY tgt to $54 from $51 based on continuing strength in non-measured channels. Firm says C-store data for the 4 weeks ending 2/19 shows accelerating sales momentum (+11% YOY) driven by +10% volumes. This marks the third consecutive period that Hershey’s has outpaced category growth, and also represents the third period of sequential top line acceleration.
Next earnings release: Apr 21 before market, unconfirmed. Thomson Reuters estimate: 0.69
Comments »Pfizer, PFE, Downgraded to a Hold
Pfizer downgraded to Hold at Standpoint Research (20.14 +0.67)
Standpoint Research downgrades PFE to Hold from Buy based on valuation.
Next earnings release: May 3 before market, unconfirmed. Thomson Reuters estimate: 0.58
Comments »